Arc Resources Ltd., one of Canada’s largest natural gas producers, said Wednesday it would send more volumes to Cheniere Energy Inc. for liquefaction and delivery to Europe.

Under a gas supply agreement (GSA) signed with Cheniere, Calgary-based Arc said it would send 140,000 MMBtu/d to the Sabine Pass Liquefaction Stage 5 project in Louisiana for 15 years once the first train comes online. Cheniere would pay a price for those volumes indexed to the Title Transfer Facility (TTF), Europe’s gas benchmark, further exposing Arc’s volumes to international indexes.

Arc CEO Terry Anderson said the deal represents the first time a Canadian producer has signed a long-term arrangement to send gas to Europe at prices tied to TTF. He added that it advances the company’s LNG strategy,...